Trump retreats on auto tariffs, plans to exempt CAR PARTS from duties

By ramontomeydw // 2025-04-26

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The U.S. will exempt some car parts from aggressive tariffs after auto industry lobbying, though a 25 percent levy on foreign-made cars and parts remains.
Automakers argued that overlapping tariffs could disrupt supply chains, raise prices and cost jobs, prompting the administration to adjust its stance.
Executives like Stellantis' John Elkann warned that tariffs risk harming both U.S. and European car industries, urging policymakers to avoid compounding duties.
The exemptions follow earlier carve-outs (e.g., consumer electronics) and suggest Trump is softening some trade measures amid economic concerns.
While the exemptions offer temporary relief, key tariffs remain and industry leaders seek clarity and consistency in trade policy moving forward.

In a significant reversal, U.S. President Donald Trump is poised to exempt some car parts from his most aggressive tariffs following intense lobbying by auto executives, marking another concession in his escalating trade battles. The move, reported by the Financial Times and later confirmed by the White House, would shield certain automotive imports from duties tied to Chinese fentanyl exports and steel and aluminum levies. However, an earlier 25 percent tariff on foreign-made cars and parts will remain in place. The decision reflects growing industry warnings that overlapping tariffs could disrupt supply chains, raise consumer prices and trigger job losses – an economic risk the administration now appears unwilling to take. The exemptions, described by insiders as a "destacking" of duties, come after weeks of pressure from automakers who argue that compounding tariffs threaten their competitiveness. (Related: Trump grants one-month tariff exemption for auto imports from Mexico, Canada amid industry concerns.) Stellantis Chairman John Elkann cautioned that Trump's trade policies were putting "American and European car industries at risk." Another unnamed executive pleaded: "Don't hit us over and over with all of these other tariffs … because that really jeopardizes the health of our sector." The reprieve follows earlier carve-outs for consumer electronics and a temporary reduction in broader "reciprocal" tariffs, suggesting Trump is selectively retreating from his most confrontational trade measures amid market turbulence and recession fears. This latest shift underscores the administration's struggle to balance its protectionist agenda with economic realities.

Auto giants unite against tariffs

Trump initially imposed sweeping tariffs – up to 50 percent on some imports – on April 2, dubbed "liberation day," before scaling them back to a 10 percent baseline for 90 days. Auto tariffs, however, remained a sticking point, with a separate 25 percent levy on parts set to take effect May 3. While vehicles complying with the U.S.-Mexico-Canada Agreement face reduced duties, industry groups warn that additional costs could cripple suppliers already in financial distress. Six major auto trade organizations recently united in a rare joint appeal, arguing that further tariffs would destabilize production and harm U.S. manufacturing. The debate also highlights tensions over trade with China, where Trump has linked tariffs to fentanyl chemical exports. Auto parts from China currently face a 20 percent duty under this policy, alongside steel and aluminum tariffs, but would avoid the higher "reciprocal" rates. Meanwhile, Trump hinted at escalating measures against Canada, stating, "We don't want your cars. We want to make our own." Yet the exemption discussions suggest pragmatism is prevailing – for now. General Motors CEO Mary Barra summed up the industry's plea: "I need clarity, and then I need consistency." As negotiations focus on simplifying sourcing rules, the broader question remains whether these concessions signal a lasting de-escalation or merely a tactical pause in Trump's trade wars. For automakers, the relief is a temporary victory. But with key tariffs still looming, the road ahead remains uncertain. Watch former Chrysler CEO Bob Nardelli lauding the Trump administration's move to exempt car parts from heavy tariffs in this Fox Business report. This video is from the TrendingNews channel on Brighteon.com.

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Auto giants unite against tariffs

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